If you’re reading this, you’ll probably agree: Starting a Web3 business is overwhelming and confusing. At least, that’s how I felt when I started funding my business with Web3 solutions for early stage crowdfunding. The learning curve felt almost out of reach. My perspective changed, however, after sitting down with my friend Metta World Peace, yes, the former Lakers legend who brought home an NBA championship in 2010. She advised me on how her billion-dollar venture capital fund dollars Tru evaluates the investments in your portfolio.

“There are two types of founders,” Metta told me, the ones that “have the experience and the education and then there are the founders who are the visionaries who know exactly where they want to be.” The founders she seeks to invest in, she says, take calculated risks. “You want to go one step at a time, make sure you’re building a good product, test it before you spend too much money building the wrong technology architecture, and be careful not to waste your investment money because I’ve seen so many people lose so much money so quickly.” .

A calculated approach is more than necessary in today’s volatile market. Despite the recent bankruptcy filing of crypto exchange FTX, entrepreneurs are building and innovating in the sector, and why shouldn’t they? The global blockchain market is still expected to be valued at around $67 billion by 2026 according to recent research from Cornell University. Despite Bitcoin falling, the total crypto market capitalization is around $900 billion, and hundreds of Web3 projects have raised billions in funding. Despite uncertain economic times, Metta still sees opportunities in this emerging and growing market and is investing in blockchain technology projects today as a result.

Not everyone sees it that way, though: VC investment money has plummeted by half. That’s why many entrepreneurs turn to alternative financing options in addition to raising venture capital.

1. Fundraising and search for investors

Have you ever invested in a traditional startup or even a crypto startup? Investing in new cryptocurrency projects is very accessible. Too easy, some might say, so you have to be very careful when using these products. There are many scam new projects in this industry, so be sure to do your own research before losing money trying to do so.

On the other hand, raising funds for yourself may be easier using crowdfunding tools than in a traditional financial environment. “Using crowdfunding tools is a new way for founders to raise money. That’s attractive to founders who don’t have connections to investors, angels or venture capitalists,” Metta explained. In Silicon Valley, for example, raising money from cold emails can be challenging and often requires a relationship with an investor to get your foot in the door. When you consider the hurdles you must overcome to meet with investors without a pre-existing network, plus the legal paperwork that goes into term sheets, it can be quite a hassle to navigate the world of venture capital. Many founders look to crowdfunding as an alternative to, or in addition to, venture capital.

Metta World Peace understands how important crowdsourcing startups are to the future of Web2 as it enters Web3. Since his unofficial retirement in 2017, Metta has shifted his focus to the business and technology industries, where he is an investor and spokesperson for various startups and small businesses.

For example, Orbiiit Technology is a company in Metta’s investment portfolio in which he was an early investor. The company launched a virtual competition called “The Pitch”, which officially launched at the end of October 2022 and ends on November 28, 2022. The competition sets out to find the next emerging unicorn founder. Metta participates in the competition as a starting judge.

Think Shark Tank, but online. Startups compete to win capital and in-kind prizes to help them grow their businesses without losing capital. Metta judges the contest alongside Orbiiit founder Nader Navabi. Together, they will judge the final top 10 contestants, who will be selected through a public online voting process. The first place winner will receive $25,000 in cash and a one-on-one Zoom mentoring session with Metta and the investment committee.

However, not everyone can fundraise or compete on “The Pitch,” so saving and investing might be the way to go.

2. Savings and investment

Many new entrepreneurs start after saving, investing, and then starting when their savings are ready to hatch. To get ahead, Metta says he “must get a stream of income as soon as possible.” Being strategic about the job or pursuit you choose can also put you on the right path to achieving your business goals.

“Let’s say you’re building a coffee company. Go to work at Starbucks to learn their systems so you can also earn some money through a day job. If you want to start a FinTech application, get a job at a VC, start in the mailroom. Do what you have to do to learn something that can impact your own business in a meaningful way,” he said. “Do this while you’re also gradually saving money to self-finance your business because the more you get your business up and running, the more capital you can keep and improve your business,” he continued.

To survive, says Metta, you always need extra money. Selling digital products is a way to earn passive income to finance your startup. and selling high. “You can also save on payroll by paying your employees in shares, tokens, or even NFTs in addition to cash.” Finally, if you have digital assets, you can put your money to work by locking them into decentralized finance platforms for returns, but remember to be very careful about the platforms you choose because this option is very risky.

3. Build connections

“Building connections helps founders raise money,” says Metta. “If you don’t have connections, it will be difficult for you to get the start-up capital you need. Web3 provides the opportunity for platforms to decentralize the way money is raised.”

We live in a highly social world. With so many opportunities, it can be easy to make the right connections if you stay active and do your best to learn more. The most common way founders raise money when they don’t have connections to investors is by hiring seed investors and advisors who do. For example, in an island community like Silicon Valley, it’s less about how many people you know and more about who you know. You may know few people, but if you know the right people in venture capital, those relationships can go a long way. Having a consultant who can give vetted presentations is a common way to schedule kickoff meetings. Offer the advisor a small package of capital and they will work hard for many hours to open up your network and help secure valuable introductory meetings.

Even if the investor passes, you can always follow up to ask the investor if they would mind introducing you to another investor friend of yours who you think might be a better fit. Always research an investor’s portfolio of start-ups to understand the common themes, sectors and stage of investment that fit into that investor’s existing portfolio and what motivates them to invest. Also, remember to keep the dollar value range within your typical check size because if it’s outside of your typical range, then the chances of them going over are higher.

It is still early. Good ideas rise to the top. If you have innovative concepts in mind but don’t know how to integrate them into the traditional market, it may be time to start as an entrepreneur. Who knows, maybe Metta World Peace will invest in your company.